Fortescue Ltd · ASX:FMG
Fortescue — Fortescue Metals Group — Non-Deal Roadshow (February 2007)
26 slides from Fortescue's roadshow presentation, Feb 26, 2007
Slide 1: Lodgement of Presentation
Fortescue Metals Group Ltd Telephone: + 61 8 6218 8888 ACN: 002 594 872 Facsimile: +61 8 6278 8880 87 Adelaide Terrace East Perth Website: www.fmgi.com.au Western Australia 6004 PO Box 6915, East Perth, Western Australia 6892 26" February 2007 The Companies Officer Australian Stock Exchange Ltd Exch
Slide 2: Project Update – Disclaimer
Fortescue Metals Group Ltd Project Update THE NEW FORCE IN IRON ORE February/March 2007 eid VM Fortescue Metals Group Ltd DISCLAIMER Important Notice The purpase of this presentation is to provide generat information about Fortescue Metals Group Lte ("Fortescue"). It is not recommended that any pers
Slide 3: Unparalleled Assets
Fortescue Metals Group Ltd v THE NEW FORCE IN IRON ORE February/March 2007 ay Unparalleled Assets ng Fortescue’s tenements far exceed Rio Tinto’s and BHP Billiton’s a. 7 ee * , e..lC ee oe a a eon ites see Sih een Oe cast The Pilbara contributes about 20% of The Pilbara contributes about 40% of BHP
Slide 4: Unparalleled Assets — Shallow Ore body
Fortescue’s first 45M ipa on the way Unparalleled Assets — Shallow Ore body ¥ Ore Body Characteristics + Free digging over burden low cost removal Mineralisation is gently undulating - typical dip at 2° to &° + Mineralised thickness varies between 3 metres and 20 metres + Multiple mining faces facil
Slide 5: Unparalleled Assets — Simple Mining Methods
6 g Unparalleled Assets — Simple Mining Methods 2 + Superior grade control techniques + Selective mining capability ~ Straight forward grade prediction from model and mapping ~ Textures and grades clearly visible after cutting lA Unparalleled Assets . Competitive Cost — iron Ore Fines Site Cost Curv
Slide 6: Unparalleled Assets
la Unparalleled Assets ~ Industry comparatives with initial 45mtpa production Market Capitalisation / Production Ratio | ® savin “Fortescue's market capitalisation per unit of modest (25%) 200 sation for Rio Tinto +80 and CVRD's tron ore divisions” 15 Jan 2007 Rio Tinto EV Per Tonne of Production x
Slide 7: Latest project highlights
Latest project highlights ¥ Project completion remains forecast within current budget. Schedule remains with first ore on ship (FOOS) expected at end of Q1 of 2008. Special Railway Licence granted on 29 November 2006 enabling major field construction to commence on rail — works underway at train unl
Slide 8: The Pilbara Infrastructure Project - Port Area
Team 45 GS cS eS B°) The Pilbara Infrastructure Project - Port Area ee BeNE” : r i Ey & rang Major Contracture © ents: ae E Bs Dieovtso zane Direct Cost & Schedule § budget sya 7M Forecast 7872 F008. 22022006
Slide 9: Port Area Direct Cost & Schedule
“rain Creeaece Deno! Direct Cost & Schedule Auedgat S745 7M S757.2M aMa2000 Cawrent Major Centeantors ore IS ease sBucger ean ate Forcast $7513N 109.8. ore 32008
Slide 10: PAO LPI
Rn jh PAO LPI
Slide 11: The Pilbara Infrastructure Project - Rail Area
U Completed Port Q1 2008 Port Hedland mw The Pilbara Infrastructure Project -— Rail Area : i cS ny # ; Bitte Bo: ‘Shih fie cue Pipa’ Facing si Fake Oe a Direct Cost & Schedule we BovrisTmas creek $648.84 Current areas ct activity gorwe bin vege Pichia ® 10
Slide 12: The Pilbara Infrastructure Project - Rail Area
Team 45 The Pilbara ei Direct Cost & Schedue suoget sen Se80. 3M peste bo, Infrastructure ae ano = saat Ch Set MARSHALLING: YARDS Sng, oes AV RAMLCAMP + Project — Rail Area "2 Be HULL HH THN FLOUDLBREAK: @onmistwas.caeek txeret areas of aioty nice, & D The Pilbara Infrastructur 20085 Camrint Majer C
Slide 13: Central Ore Processing Area
Estee Ropaing iets Direct Cost & Schedule aay Ses. Forecast 3673.50 FOaT. yene2eo8 SILOM: BREAK. Lp Rectan Lene! aciny at 2 1 #8 curieTMAs CREEK, viens The Pilbara Infrastructure Project —- Central Ore Processing Areal 2g 4 Direct Cost & Scheriule Bagel 446.188 Foreeas 450.0 12
Slide 14: The Pilbara Infrastructure Project — Central Ore Processing Area
The Pilbara Infrastructure Project — Central Ore Processing Area Hunget S28 1M Focecast Sate t0t FooY of) Direct Cost & Schedule y Budget 54d. Forcast s4508N FOG. 18022908 13
Slide 15: Central Ore Processing Area – Straightforward Construction
The Pilbara Infrastructure Project - Central Ore Processing Area F Current ‘ini Conmortars: || sifocte gapencad Tiract Cost & Schedule Suaget $448 18 Feawcaet gaay ant Fone w Straightforward Construction Construction Risk TODAY + Multiple sites facilitate parallel construction EXTREME + Contract ris
Slide 16: Forecast to complete within budget
6 Forecast to complete within budget sun * ditions Cost Overan & Back-up Rosonve {alo} pedrestnseture Com 2.000 4] Ming & Working Capilal aaa ntraxinscture Cows actual! Forsease 200 200 1.860 1,980} she ‘ie AES Hie babe bt Bape * te ise fs. Hage eh San Ca eee ° Cre Ee oy se fica HS) i He a 2c ee a e
Slide 17: Schedule on Track
Schedule on Track Ome FabiT Seer Rese Cennvonorug| re ‘ave ‘emgitna caren Mark? Aged? Myst Cate ony aes hes Blue chip list of suppliers and partners J + Laing O’Rourke — Rail Construction + Roche Mining ~ Mining + BGC — Rail Earthworks + Thyssen Krupp — Stackers, Reclaimers and Shiploader + GE-~Loco
Slide 18: Financial strength
a) Financial strength + A$3.2 billion in capital raised in August 06 + All convertible notes exercised — A$150m issued capital + Leucadia contributed ASS30m + A$750m contingency and interest provision « Project designed for initial port, rail and mine to afford major low cost expansions Market Capit
Slide 19: China demands Australia recover its market share
China demands Australia recover its market share . Chinese imports by Source 1990 1994 1992 1993 1994 1995 1996 1997 1998 1999 2000 2004 aero 2 sesesee eeosog Agagan om Aust — Brazil India von S Africa — Others Why? Because the Pilbara is the most attractive supplier ¥ Australia is the most competit
Slide 20: Pilbara Iron Ore benchmark price vs. market expectations
Pilbara Iron Ore benchmark price vs. market expectations “ 160 140 120 % Change in contract price 2600 2001 2002 2003 2004 2005, 2006 2007 \2008/ mame Analyst forecast % change mmm Aciual % change Analyst forecast % cumulative - Actual % change cumulative Source: Merrifi Lynch lron Ore Market ¥ 1400
Slide 21: Chinese iron ore imports trend and organisation chart
i bef rece : a j ... and the trend is likely to continue 2 Chinese Iron Ore Imports BP crv 2008 Forecast 600 oe 500 o 2 400 § = 300 2005 Forecast § ; = 200 = “ool 0 | | oo OF 0284? os 09 _/ Actual AME Forecast in 2006 Source: Rio TintoYAME “year to date annualised My Organisation chart T45 and beyon
Slide 22: Mine Plan Growth — Target 110mtpa; Further Options
Buc Mine Plan Growth — Target 110mtpa; Further Options @ CLOUD BREAK mw TEXTURE X70 OCHRISTMASCREEK = OMTLEEUMIN, mVOTE KNIGHT @FLINDERS SOLOMON Tar Stage 1 ~ 45 mtp First Ore on Ship March 2008 1 Berth MN, «1 Ship loader 41 Lay-by berth 2.5mt stockpile Single loop 1x2 car train unloader 21
Slide 23: Stage 1(a) – mtpa Stretch
Stage 1(a) ~ 60 mtpa Stretch * Government Approvals 2007 / Construction 2008-9 PortHedland as! ne a Point Samson yc Dampler// wi vee . ao te we \ LEGEND a ++ FMG Rall —— _FMG Kennedy Rat Other Rat 2) EMG Tonoments \ 48/60 mtpa . Ore Processing Plant Capital steps to expansion — stretch to 60mtpa ¥ M
Slide 24: Stage 2 – 110 mtpa
Stage 2 ~ 110 mtpa; Major approvals in place though further approvals required Fort Hediand heres Dampier, Nye tot Point Si Pa 4 __,Point Samson & Cart LEGEND ++ FAG Rall ++ EMG Kennedy Ralf \ 4 10 mipa Stage 2-110 mtpa 3 Berths 2 Shiploaders 10 mt stockpile Double loop 1x2 car train untoader 1x4 ca
Slide 25: Capital steps to expansion — 110mtpa
6 z Capital steps to expansion — 110mtpa Mtpa Mine Site Crushing Rail Port incremental Screening & Processing 45 As designed 55 Cloud Break 60 5Mtpa Trucks & Pass Loop/Trains | 2 Loading Berths Mobile Crusher 1 Ship Loader & additional Reclaimer? 116 ROM Scalping S0Mtpa Crushing | Passing Loops 3 Lo
Slide 26: Conclusion
we Conclusion + Huge reserve portfolio — initial mine plan +20 years + Products extensively trialed and 92% under contract + Open access port arid rail infrastructure advanced + On budget, straightforward project construction and operation underway Q1 2008 + Government and project partners fully com
Fortescue Metals Group — Non-Deal Roadshow (February 2007) on 6ix